Bonita Industries had sales of $500000, variable costs of $580000, and direct fixed costs totaling $100000. The company's average operating assets total $980000 and its required return is 13%. What is the company's residual income? O $372600 O $-307400 O $452600 O $127400
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- View Policies Current Attempt in Progress A company has three product lines, one of which reflects the following results: $244000 Sales Variable expenses 141000 Contribution margin 103000 Fixed expenses 130000 $ (27000) Net loss If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will O decrease by $25000. decrease by $103000. increase by $27000. increase by $25000.13 )Current Attempt in Progress A company has three product lines, one of which has the following results: Sales Variable expenses Contribution margin Fixed expenses Net loss Save for Later esc If this product line is eliminated, 60% of the fixed expenses will be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will ! O increase by $35000. O increase by $15000. O decrease by $90000. O decrease by $15000. 1 $221000 Q 131000 A 90000 125000 $(35000) 2 W S #3 с E D $ 4 R % 5 G Search or type URL FL Attempts: 0 of 1 used MacBook Pro T 6 G Y & 7 H Submit Answer X 8 U 9
- PROBLEM NO.2 Compute the FW: $3500 market value productivity attrībutable to equipment per year (Operating costs have already been deducted from the revenue) $8500 $8500 $8500 $8500 $8500 2 3 5 End of Year i= 25%/yr $23500 investment cost 4.es: SALES $8 per unit $160,000 LESS: VARIABLE EXPENCES (128,000) Contribution margin $32,000 LESS: Fixed expences (44,000) Operating income (loss) $12,000 IF obrien s adversiting coast increased by 8,000 by how much would sales have to increase for the company to achieve an operating income of $6,000? a. 66,000 b.96,000 c102,000 d.130,000 e.none of above what would obrien operating income (or loss) be if fixed costs were increased by 10 percent and sales volume increased by 30percent? a. $1,290 b.$2,650 c.$6,800 d$9,680 e.none of aboveO e. Sales - variable expenses + profit = fixed expenses For XYZ Company, how many units of their product would have to be sold to yield a target operating income of $210,000 for the financial year ending 2021, assuming variable costs are $50 per unit, total fixed costs are $90,000, and the unit selling price is $65? a. 14,000 units Ob. 6,000 units Oc. 20,000 units O d. 6,000 units OUS PAGE NEXT PAGE 16
- Exercise F The luggage department of Sampson Company has revenues of $1,000,000; variable expenses of $250,000; direct fixed costs of $500,000; and allocated, indirect fixed costs of $300,000 in an average year. If the company eliminates this department, what would be the effect on net income?The S Company provides you with the following information on its products: Unit selling price Unit variable costs and expenses P100 75 Fixed costs and expenses per year P600,000 It has been estimated that during a temporary shutdown o four months, fixed costs and expenses can be reduced by 20%, although additional costs of maintenance and security of P18,000 has to be incurred. REQUIRED: 1. At what point in units would loss from operations be equal to shutdown costs? Prove by preparing an income statement. 2. How many units must be sold to avoid a loss? Prove also the answer by preparing an income statement. 3. How much is the net advantage or disadvantage of shutting down during the 4- month period? 4. Assuming that the additional cost for security will not change at P18,000, compute again for shutdown point, if the shutdown would be: a. Three months b. Six months c. Five months d. One yearDONT GIVE ANSWER IN IMAGE FORMAT